• Save
Universal Insurance Plc 3Q 2013 results
Upcoming SlideShare
Loading in...5
×
 

Universal Insurance Plc 3Q 2013 results

on

  • 154 views

Universal Insurance Plc 3Q 2013 results

Universal Insurance Plc 3Q 2013 results

Statistics

Views

Total Views
154
Views on SlideShare
153
Embed Views
1

Actions

Likes
0
Downloads
0
Comments
0

1 Embed 1

http://www.africansens.com 1

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Universal Insurance Plc 3Q 2013 results Universal Insurance Plc 3Q 2013 results Document Transcript

    • MANAGEMENT ACCOUNT For The Period Ended 30 June 2013 Universal Insurance Plc RC 2460
    • UNIVERSAL INSURANCE PLC CONSOLIDATED STATEMENTS OF FINANCIAL POSITION For the period ended 30 June 2013 NOTES `30 JUNE 2013 `31 December 2012 Assets N'000 N'000 Cash and Cash Equivalents 6 308,523 103,957 Financial Assets 7 2,279,253 2,279,253 Trade Receivable 8 - 14,046 Reinsurance Assets 9 15,560 15,560 Other Receivable 10 1,722,411 1,690,756 Investment in subsidiaries 11 2,561,666 2,561,666 Deferred Acquisition cost 12 49,810 15,225 Investment Properties 13 934,118 934,118 Intangible Asset 14 4,752 4,635 Property Plant and Equipment 15 2,519,420 2,546,185 Statutory Deposits 16 335,000 335,000 Total Assets 10,730,514 10,500,401 Liabilities Insurance Contract Liabilities 17 389,457 240,643 Borrowings 18 - - Trade payable 19 19,575 16,484Trade payable 19 19,575 16,484 Other payable 20 1,742,325 1,740,963 Employee benefit liability 21 - 1,219 Income Tax liabilities 22 119,167 117,660 Deferred tax liabilities 23 447,305 447,305 Total Liabilities 2,717,828 2,564,274 Equity Issued and paid Share capital 24. 1 8,000,000 8,000,000 Share Premium 24. 2 825,018 825,018 Contigency Reserves 24. 3 244,264 233,028 Fair value reserve 24. 4 950,425 950,425 Fixed asset revaluation reserve 24. 5 540,268 540,268 Retained earnings 24. 6 (2,547,289) (2,612,612) Shareholders funds 8,012,686 7,936,127 Other equtiy instruments - - Non - controlling interests - - TOTAL EQUITY & LIABILITIES 10,730,514 10,500,401 ……………………………………………………………………….. ………………………………………………….. UJOATUONU BENEDICT SAMUEL U. NDUBUISI CHIEF EXECUTIVE OFFICER CHIEF FINANCE OFFICER FRC/2013/CIIN/0000003282 FRC/2013/ICAN/0000003290
    • `June 2013 `December 2012 MOTOR FIRE GENERAL ACCIDENT MARINE 2013 2012 N`000 N`000 N`000 N`000 N`000 N`000 35,550 10,376 61,919 180,330 288,175 331,332 16,080 11,599 50,459 8,215 86,353 82,515 51,630 21,975 112,379 188,544 374,529 413,847 (18,796) (5,557) (60,241) (117,039) (201,633) (11,615) 32,834 16,418 52,138 71,506 172,896 402,232 - (2,305) (3,310) (2,281) (7,896) (16,472) 32,834 14,113 48,828 69,225 165,000 385,760 - 488 2,253 1,336 4,077 5,086 32,834 14,601 51,081 70,561 169,077 390,846 8,167 7,837 8,698 3,050 27,752 27,042 571 1,401 5,482 1,351 8,805 7,569 THE UNIVERSAL INSURANCE PLC UNDERWRITING REVENUE ACCOUNT FOR THE PERIOD ENDED 30 JUNE 2013 Direct Premium Written Reinsurance Accepted Gross Premium Written Changes in Reserve for Unexpired Risk (*) Gross Premium Earned Reinsurance cost Net Premium Written Commission Receiveed Net Income Claims Incurred: Direct Claims Paid Provision for Outstanding claims (IBNR) Changes in Provision for Outstanding Claims (**) 571 1,401 5,482 1,351 8,805 7,569 (4,084) (41,322) 3,311 75 (42,020) 36,541 4,654 (32,085) 17,492 4,476 (5,463) 71,152 (1,352) (2,092) (1,582) (663) (5,689) (9,388) 3,302 (34,177) 15,910 3,813 (11,152) 61,764 8,245 4,759 40,662 13,940 67,605 75,403 (2,547) (1,216) (18,856) (11,965) (34,584) (2,932) 5,697 3,543 21,806 1,975 33,021 72,471 8,999 (30,634) 37,716 5,788 21,869 134,235 23,835 45,235 13,365 64,774 147,208 256,611 32,448 9,503 48,030 979 90,960 79,345 51,245 15,060 108,271 118,018 292,593 90,960 (18,796) (5,557) (60,241) (117,039) (201,633) (11,615) 9,790 55,332 51,516 13,440 130,078 67,704 5,706 14,010 54,827 13,515 88,058 93,538 (4,084) (41,322) 3,311 75 (42,020) 25,834 Provision for Outstanding claims (IBNR) Changes in Provision for Outstanding Claims (**) Gross Claims Incurred Reinsurance Claims Recovery Net Claims Incured Underwriting Expenses: Commission Paid Changes in deferred commission Total Underwriting Expenses Total Expenses ** Changes in provision for outstanding claims Underwriting Result Provision for Unexpired Risk- 31 December 2012 Provision for Unexpired Risk- 30 JUNE 2013 * Changes in reserve for unexpired Risk Provision for Outsanding Claims- 31 DECEMBER 2012 2012 Provision for Outsanding Claims- 30 JUNE 2013
    • Universal Insurance Plc Notes to the financial statements For the year period ended 30 June 2013 6 Cash and Cash Equivalents `30 June 2013 `December 2012 This comprises of: N'000 N'000 Cash and Bank Balances 308,523 103,957 Total 308,523 103,957 7 Financial asset This comprises of: Financial assets at fair value through profit or loss 20,177 20,177 Available-for-sale financial assets 2,259,076 2,259,076 Financial assets 2,279,253 2,279,253 Current 20,177 20,177 Non-current 2,259,076 2,259,076 (a) Financial assets at fair value through profit or loss Equity securities -Listed 20,177 12,241 Net impairment gain/(loss) - 7,936 Total financial assets at fair value through profit or loss 20,177 20,177 Current 20,177 20,177 Non-current - - - (b) Available-for-sale financial assets Equity securities -Unlisted 2,259,076 2,311,772 Reversal of impairment loss made under - - Total Equity securities 2,259,076 2,311,772 Fair value gain/(loss) on AFS unlisted equity - (52,696) Total available-for-sale financial assets 2,259,076 2,259,076 Current - - Non-current 2,259,076 2,259,076 8 Trade Receivables Page 4 of 11 9 Reinsurance Assets `30 June 2013 `December 2012 N'000 N'000 Reinsurance Prepaid 15,560 2,713 Prepaid minimum and deposit reinsurance - 6,250 Reinsurance recovery on claim reserve - 6,597 Total Reinsurance Assets 15,560 15,560 Current 15,560 15,560 Non-current Reinsurance receivables are to be settled on demand and the carrying amount is not significantly different from the fair value 10 Other Receivables and prepayments The balance is analysed as follow: Prepayment 75,262 68,340 Other loans and receivables (note 10 (i)) 1,607,949 1,607,651 Other loans and receivables from related 39,200 33,460 Stock of raw materials - - 1,722,411 1,709,451 Impairment of other loans and receivables - - Balance at period end 1,722,411 1,709,451 Current 123,469 110,509 Non-current 1,598,942 1,598,942 10. (i) Other loans and receivables Staff Debtors 3,699 3,144 Staff Share Loan (note 10.(ii)) 1,597,027 1,598,942 Other receivables 7,224 5,565 1,607,949 1,607,651 Impairment of other loans and receivables - - 1,607,949 1,607,651 10 (ii) Staff Share Loan:- 10. (iii) Due from related parties 39,200 33,460 39,200 33,460 There were no indicators of impairments for re-insurance assets as balance are set-off against payable from retrocession The amount is made up of African Alliance Insurance Company Plc share purchased during the Private Placement Other loans and receivables due from related parties Page 4 of 11
    • Impairment of due from related parties (10.(iiv)) - - 39,200 33,460 10 (iv) The movement in impairment charge is as `30 June 2013 `December 2012 N'000 N'000 Balance beginning of year - - Impairment of other loans and receivables - - Impairment of receivables due from related - - Balance at period end - - 11 Investment in subsidiaries This comprises of investment in: Molit Hotels & Catering Services Limited (a) 528,105 528,105 Universal Hotels Limited (b) 2,033,561 2,033,561 Investment in subsidiaries 2,561,666 2,561,666 11 (a) Molit Hotels and Catering Services Limited The company was established to carry on the business of providing hotel, accommodation, tourist and hospitality activities. Universal Insurance Plc has 100% investments in the company. 11 (b) Universal Hotels Limited The company was established to carry on the business of providing hotel, accommodation, tourist and hospitality activities. Universal Insurance Plc has 100% investments in the company. 12 Deferred acquisition `30 June 2013 `December 2012 N'000 N'000 Motor 6,460 3,912 Fire 3,234 2,018 General accident 27,956 9,100 COMPANY Deferred acquisition costs represent commissions on unearned premium relating to the unexpired period of risks and comprise: Page 5 of 11 General accident 27,956 9,100 Marine 12,160 195 49,810 15,225 12.1 Movement in deferred acquisition cost At beginning of year 15,225 13,943 Changes during the year 34,585 1,282 At end of year 49,810 15,225 Due within 12 months 49,810 15,225 Due after more than 12 months - - 13 Investment properties `30 June 2013 `December 2012 N'000 N'000 Oyingbo Garden Avenue estate 250,000 250,000 Vine Estate- Abuja 720,000 720,000 Rumudumu Model Estate Portharcourt 684,118 684,118 Others 175,369 175,369 1,829,487 1,829,487 Impairment loss on investment properties (895,369) (895,369) 934,118 934,118 13 a. Assets In The Name of Conau Limited: Oyingbo Garden Avenue estate Rumudumu Model Estate Portharcourt These assets were introduced by Conau Limited in 2007 during the recapitalisation exercise, with deeds assigning the properties to Universal Insurance Plc. Status of Perfection of Title: The firm of IBOM Partners, a firm of attorneys, solicitors, fraud examiners & legal consultants have been appointed to commence the process of perfecting the title to the properties in the name of Universal Insurance Plc. 13 b. Assets In the name of Minaj Holdings Limited: Investment properties represent buildings and un-developed landed properties acquired for subsequent disposal in the Page 5 of 11
    • Vine Estate- Abuja In December 2007, Universal Insurance Plc paid for 20 units of Houses to be developed by Minaj Holdings Limited in the Vine Garden Estate Abuja. Status of Perfection of Title: This project is ongoing. Effort is being made to recover the fund as pace of development of the property is no longer favourable to Universal Insurance Plc. This amount has been fully provided for in the financial statement.. 14 Intangible Assets `30 June 2013 `December 2012 N'000 N'000 Cost Balance, beginning of period 5,337 4,500 Additions 509 837 Transferred from PPE (computer) - Balance, end of period 5,846 5,337 Accumulated amortisation Balance, beginning of period 702 27 Amortisation expense/impairment charge 392 675 Transferred from PPE (computer) - - Balance, end of period 1,094 702 Net book amount End of period 4,752 4,635 15 Property, plants and equipments COMPANY Furniture Motor Computer Land& Building Plant & Machinery and Fittings Vehicles Hardware Total N'000 N'000 N'000 N'000 N'000 N'000 Cost/Revalued amount Balance, beginning of period 2,886,114 5,872 67,787 123,689 4,034 3,087,495 The intangible assets of the company comprised of computer software. The computer softwares are Page 6 of 11 Balance, beginning of period 2,886,114 5,872 67,787 123,689 4,034 3,087,495 Additions during the year - 289 24 - 262 575 Disposals - - - - - - Revaluation - - - - - - Balance, end of period 2,886,114 6,161 67,811 123,689 4,296 3,088,070 Accumulated depreciation Balance, beginning of period 364,445 4,451 54,136 117,746 532 541,310 Charge for the year 23,063 430 3,316 244 287 27,340 On Disposal - - - - - - Balance, end of period 387,508 4,880 54,136 117,746 532 568,650 Netbook value as at 30 June 2013 2,498,606 1,280 13,651 5,943 3,502 2,519,420 Netbook value as at 31 December 2012 2,521,669 1,421 13,651 5,943 3,502 2,546,185 16 Statutory deposit `30 June 2013 `December 2012 N'000 N'000 Statutory deposit 335,000 335,000 Total 335,000 335,000 Non-current 335,000 335,000 17 Insurance Contract Liabilities JUNE DECEMBER 2,013 2012 Reserve for Unearned premium N'000 N'000 Motor 51,245 32,448 Fire 15,060 9,503 General Accident 108,271 48,030 Marine 118,018 979 Gross Unearned Premium Reserve 292,593 90,960 Reinsurance element in UPR (2,995) - Net Unearned Premium Reserve 289,598 90,960 Reserve for Outstanding Claims Motor 5,706 10,769 Fire 14,011 60,865 General Accident 54,827 56,667 Marine 13,515 14,784 88,058 143,086 Statutory deposit represents the amount deposited with the Central Bank of Nigeria in accordance with Section 10 (3) of the Insurance Act, CAP I17 LFN 2004. Page 6 of 11
    • Add 10% IBNR 8,805 16,550 96,864 159,636 Additional charge to claims reserve (IBNR) - - Gross claim reserve 96,864 159,636 Reinsurance projection on IBNR - - Net Claims reserve 96,864 159,636 389,457 250,597 19 Trade payables Trade payables represnet liabilities to agents, brokers and re-insurers on insurance contracts during the year Reinsurance payable 19,575 16,484 Insurance payable 0 0 Other trade creditors 0 0 Balance at year end 19,575 16,484 Current 19,575 16,484 20 Other payables `30 June 2013 `December 2012 This is analysed as follow: N'000 N'000 Due to related parties (note 20.1) - 1,698,295 Provisions and accruals - 42,668 - - 1,740,963 20.1 Due to related companies Conau Limited (note 20.1a) - - African Alliance Insurance Plc (note 20.1b) - 1,684,667 Due to other related parties - 14,328 - 1,698,995 20.1a Conau Limited: The company is the major shareholder of the shares of Universal Insurance Plc. The balance represents transactions and funding arrangements for Universal Insurance Plc at various times. The latest valuation of the fund was as at 31 December 2012 by HR Nigeria Limited. At that date, the book value of the Provision for claims was determined using the basic chain ladder method and claims development from 2008 - 2012. Page 7 of 11 arrangements for Universal Insurance Plc at various times. 20.1b African Alliance Insurance Plc: This is a sister company having common directorship with Universal Insurance Plc. Conau Limited has majority shareholding in African Alliance Insurance Plc. The balance represent amount payable to African Alliance Insurance Plc in respect of funds collected on behalf of African Alliance Insurance Plc during the 2008 private placement and other transactions carried out during the period. N1.598 billion represent the balance payment for N2.8 billion worth of shares alloted on the private placement of Africa Alliance Insurance Company Plc subscribed to by the company in 2008. 21 Employee benefit liabilities Defined contributory scheme `30 June 2013 `December 2012 N'000 N'000 Staff pension scheme - 3,943 Current - - 3,943 22 Income tax payable `30 June 2013 `December 2012 N'000 N'000 22.1 Per Profit and Loss Account Income Tax 3 17,819 Education Tax - - Provision for NITDA Tax - - 3 17,819 Deferred Taxation (Note 23) - - Profit and Loss Account 3 17,819 22.2 Per Balance Scheet Taxation At beginning of year #VALUE! 82,224 Charge for the Year (note 22.1) 3 17,819 Payment during the Year - - At year end #VALUE! 100,043 23 Deferred Tax Liability At beginning of year - 412,164 Addition during the year - 35,141 The Company runs a defined contributory plan in accordance with the Pensions Reform Act where contributions are made Page 7 of 11
    • Charged to profit and loss - - At year end - - 447,305 24. 1. Share capital The share capital comprises: `30 June 2013 `December 2012 N'000 N'000 Authorised - 16,000,000,000 Ordinary shares of 50k each 8,000,000 8,000,000 Issued and fully paid - 16,000,000,000 Ordinary shares of N0.50k each 8,000,000 8,000,000 24. 2. Share premium 24. 3. Contingency Reserve Balance, beginning of period 233,027 220,612 Transfer from profit and loss 11,236 12,415 Balance, end of period 244,263 233,027 24. 4. Fair Value Reserve This is the net accumulated change in the fair value of available for sale asset until the investment is derecognised or impaired. Balance, beginning of period 950,425 1,003,121 Net Fair value gain/(loss) on available-for-sale - (52,696) Balance as at period end 950,425 950,425 24. 5. Revaluation Reserve `30 June 2013 `December 2012 N'000 N'000 Balance, beginning of period 540,268 423,268 Share premium is made up of payments in excess of par value of paid-in capital. This reserve is not ordinarily available for In accordance with the Insurance act, a contigency reserve is credited with the greater of 3% of total Page 8 of 11 Balance, beginning of period 540,268 423,268 Revaluation Surplus 0 117,000 Balance as at period end 540,268 540,268 24. 6. Retained earnings The retained earnings represents the amount 24. 7. Contingencies and commitments (a) Legal proceedings and regulations (b)Bonds and guarantees ( c) Capital commitments The Company has no capital commitments as 25 Gross Premium Income `30 June 2013 `December 2012 N'000 N'000 Gross premium written Direct Premium: Motor 35,550 69,922 Fire 10,376 15,905 General Accident 61,919 108,604 Marine 180,330 136,900 288,175 331,331 Inward Reinsurance Premium: Motor 16,080 21,170 Fire 11,599 8,262 General Accident 50,459 45,847 Marine 8,215 7,236 86,353 82,515 Gross premium written 374,529 413,846 Changes in unearned premium Motor (18,796) (5,544) Fire (5,557) 954 General Accident (60,241) (6,890) Marine (117,039) (135) Net change in unearned premium (201,633) (11,615) The Company operates in the insurance industry and is subject to legal proceedings in the normal course of business. The company provides financial guarantee and bonds to third parties at the request of customers in the form of bid and Page 8 of 11
    • Gross premium earned 172,896 402,231 Reinsurance expenses (note 26) - (16,472) Net insurance premium income 172,896 385,759 26 Reinsurance expenses Reinsurance costs Motor - - Fire - 6,358 General Accident - 7,139 Marine - 2,977 - 16,474 Prepaid re-insurance cost - - Reinsurance projection on IBNR - Net Reinsurance expenses - 16,474 `30 June 2013 `December 2012 27 Fees and Commission Income N'000 N'000 Motor - 105 Fire 488 2,300 General Accident 1,128 1,976 Marine 683 706 2,298 5,087 Fee income represents commission received on direct business and transactions ceded to re-insurance during the year under review. 28 Claims expenses `30 June 2013 `December 2012 N'000 N'000 Direct claims paid during the year 27,752 24,359 Changes in outstanding claims (42,020) 40,195 Gross claims incurred - (14,268) 64,554 Reinsurance claims recovery (5,689) (9,388) Page 9 of 11 Reinsurance claims recovery (5,689) (9,388) - (19,958) 55,166 29 Underwriting expenses `30 June 2013 `December 2012 Gross commision paid N'000 N'000 Motor - 12,849 Fire - 7,762 General Accident - 15,211 Marine - 22,917 - 58,739 Changes in differred commission Motor - 2,305 Fire - 1,006 General Accident 8,245 (3,356) Marine 4,759 1,695 13,004 1,650 Underwriting expenses 13,004 60,389 30 (i) Investment Income Investment income attributable to policyholders - - 63,939 Investment income attributable to shareholders #REF! 214,615 - 278,554 (a) Investment income attributable to policyholders Dividend - Quoted and unquoted investments - 5,562 Gains on sales of shares - 16,243 Interest on call deposits - 126 Exchange gain/(loss) - 506 Profit/(loss) on disposal of fixed assets - 73 Rental Income - 6,940 Other income - 84,546 - 113,996 31 Other operating and administrative expenses (i) Employee benefits expense Staff cost 47,768 93,810 Contributions to defined pension scheme - 5,319 Other staff costs 6,263 2,779 Underwriting expenses are those expenses incurred in obtaining and renewing insurance contracts. They include Page 9 of 11
    • 54,030 101,908 (ii) Management expenses comprise; Bank charges 554 568 Other charges and expenses 44,107 57,925 General maintenance and running costs 34,610 23,768 Legal and professional fees 8,288 8,094 Insurance supervision fees 3,321 3,878 Depreciation 26,638 68,204 Amortisation of Intangible Assets 1,094 707 Interest on overdrafts - - Cost of sales - Hotels - - Other operating expenses 118,612 163,144 Other operating and administrative expenses 172,642 265,052 Page 10 of 11Page 10 of 11
    • Universal Insurance Plc Statements of Comprehensive Income For the Period ended 30 June 2013 Notes `June `December `2013 `2012 N'000 N'000 Gross Premium written 25 374,529 413,847 Decrease/(increase) in unearned premium (201,633) (11,615) Gross Premium Earned 172,896 402,232 Reinsurance Premium Expense 26 (7,896) (16,472) Net Insurance Premium Income 165,000 385,760 Fees and Commission income 27 - 5,086 Total Underwriting Income 165,000 390,846 Insurance benefits Claims expenses 28 14,268 (64,554) Claims Expense Recovery from reinsurance 28 5,689 9,388 Change in contract liabilities 28 (8,805) (6,597) Fees and Commission income 27 2,298 13,451 (61,763) Underwriting Expenses Acquisition expenses 29 (33,021) (72,470) (33,021) (72,470) Underwriting Profit/(Loss) 145,429 256,613 Investment income 30 112,279 278,555 Other operating income 30 (ii) - - Total investment income 112,279 278,555 Net Income 257,708 535,168 Net realised gains on financial assetsNet realised gains on financial assets Impairment charges 31 (i) (96,381) Net realised gains/(loss) on financial assets 31 (ii) - 7,936 Net fair value gain/(loss) on investment properties 31 (ii) - - Other operating and administrative expenses 32 (172,642) (265,052) Total Expenses (172,642) (353,497) Result of operating activities 85,066 181,671 Interest expense 33 - - Profit or (Loss) before Taxation 85,066 181,671 Income Tax Expense/ (Credit) (8,507) (23,617) Profit or Loss after Taxation 76,559 158,054 Profit or Loss for the period Other comprehensive income /(loss) Revaluation surplus on PPE - - Total other comprehensive income Total comprehensive income / (loss) for the year Profit attributable to: Equity holders of the Company 76,559 158,054 Non-controlling interest - - Profit/(loss) for the period 76,559 158,054 Other Comprehensive income Items within OCI that may be reclassified to the profit or loss; Fair value changes in AFS financial assets 24. 4 - (52,696) Deferred tax impact of chnages in AFS financial assets 23 - (41)Items within OCI that will not be reclassified to the profit or loss; PPE revaluation gains 24. 5 - 117,000 Deferred tax impact of revaluation gains 23 - (35,100) Other comprehensive income for the period - 29,163 Total comprehensive income 76,559 187,217 Total comprehensive income attributable to: Equity holders of the company 76,559 187,217 Non-controlling interests - - Total comprehensive income for the period 76,559 187,217 Earnings per; share-basic and diluted 34 - -